Samsung subsidizing DRAM business with NAND profits?

Taiwanese DRAM makers complain Samsung is driving them out of the market, by subsidizing its loss-making DRAM operations with profits generated by NAND flash memory. More info at DigiTimes.

Samsung Electronics has made efforts to provide NAND flash prices that maintain profitability in contrast to its DRAM pricing strategy, according to industry sources in Taiwan. The memory-chip vendor has adopted a strategy of using profits from NAND flash to cover losses from DRAM sales, allowing little room for Taiwan-based DRAM chipmakers to operate, the sources claimed.

The speculation follows DRAM contract prices recently revealed by DRAMeXchange. Data gathered by the market research firm show that contract prices for 2GB DDR2 modules and 1Gb DDR2 chips remain unchanged for the first half of July, whereas pricing for 2GB DDR3 parts and 1Gb DDR3 continue its rally in the same period.